Key Insights
The Indian hotel industry, valued at $247.31 million in 2025, is experiencing robust growth, projected to expand at a Compound Annual Growth Rate (CAGR) of 13.96% from 2025 to 2033. This surge is driven by several factors, including a burgeoning middle class with increased disposable income fueling leisure and business travel, a rise in inbound tourism boosted by India's growing global prominence, and the expansion of domestic air travel connectivity. The increasing popularity of experiential travel and the demand for unique accommodations are also significant contributors. Furthermore, the strategic investments by major hotel chains in upgrading their infrastructure and service offerings, coupled with the growth of online travel agencies and loyalty programs, are further propelling market expansion. Segmentation within the industry reveals a diverse landscape, with chain hotels and independent hotels competing across various price points, from budget-friendly options to luxurious resorts. Service apartments are also gaining traction, catering to the needs of extended-stay travelers.
Indian Hotel Industry Market Size (In Million)
However, the industry faces certain challenges. Rising land costs and construction expenses can impact profitability, especially for new projects. Fluctuations in currency exchange rates and global economic uncertainty can affect international tourism, influencing revenue streams. Intense competition among established players and the rise of new entrants also necessitates continuous innovation and adaptation. Effectively managing operational costs while enhancing guest experience remains crucial for sustained growth and profitability within this dynamic market. Government regulations and infrastructure development also play a significant role in shaping the industry’s trajectory. Focusing on sustainability and eco-friendly practices is becoming increasingly important in attracting environmentally conscious travelers.
Indian Hotel Industry Company Market Share
Indian Hotel Industry: A Comprehensive Market Report (2019-2033)
This comprehensive report provides a detailed analysis of the Indian hotel industry, offering invaluable insights for investors, industry professionals, and strategic decision-makers. Covering the period from 2019 to 2033, with a base year of 2025, this report forecasts market trends, identifies key players, and examines the challenges and opportunities within this dynamic sector. The report uses Million (M) for all values.
Indian Hotel Industry Market Structure & Competitive Dynamics
The Indian hotel industry exhibits a complex structure characterized by a mix of large multinational chains and smaller independent hotels. Market concentration is moderate, with a few dominant players like Oberoi Hotels and Resorts, ITC Hotels, and Taj Hotels holding significant market share, estimated at approximately xx M USD collectively in 2025. However, the rise of budget hotels and online travel agents (OTAs) like OYO Rooms has increased competition significantly. Innovation is driven by technological advancements in online booking, revenue management systems, and customer relationship management (CRM). Regulatory frameworks, including licensing and taxation, influence operational costs and profitability. The industry faces competition from alternative accommodations such as service apartments and homestays.
- Market Concentration: Moderate, with top players holding xx% market share in 2025.
- M&A Activity: Significant M&A activity observed in recent years, with deal values totaling approximately xx M USD during 2019-2024. This includes smaller acquisitions and expansion strategies by established players.
- End-User Trends: Increasing demand for budget-friendly accommodations, luxury experiences, and customized services.
- Product Substitutes: Rise of alternative accommodation options like homestays and service apartments impacts market share.
Indian Hotel Industry Industry Trends & Insights
The Indian hotel industry is experiencing robust growth, driven by a burgeoning middle class, rising disposable incomes, and increased domestic and international tourism. The Compound Annual Growth Rate (CAGR) is projected at xx% from 2025 to 2033, reaching a market size of xx M USD by 2033. Technological disruptions, such as online booking platforms and mobile apps, have revolutionized the way hotels operate and interact with customers. Consumer preferences are shifting towards personalized experiences, sustainable practices, and value-added services. Increased competition is pushing hotels to innovate and enhance their offerings. Market penetration of online booking is high, estimated at xx% in 2025.
Dominant Markets & Segments in Indian Hotel Industry
The Indian hotel market is geographically diverse, with key metropolitan areas like Mumbai, Delhi, and Bangalore witnessing substantial growth. Within the segments, the budget and economy hotel segment demonstrates the fastest growth, driven by affordability and increasing demand.
By Type:
- Chain Hotels: Dominate the market share due to brand recognition, established distribution networks, and economies of scale.
- Independent Hotels: Offer niche experiences and personalized services, catering to specific market segments.
By Segment:
- Budget and Economy Hotels: Fastest-growing segment, fueled by price sensitivity and the rise of budget travelers. Key drivers include economic growth and increasing affordability.
- Mid and Upper Mid-Scale Hotels: A substantial segment catering to business and leisure travelers seeking a balance between price and quality. Key drivers include corporate travel and domestic tourism.
- Luxury Hotels: High-end segment experiencing consistent growth, driven by increasing affluence and demand for luxurious experiences. Key drivers include rising disposable incomes and luxury tourism.
- Service Apartments: A growing segment offering extended-stay options for business travelers and families. Key drivers include increased corporate relocation and long-term travel needs.
Indian Hotel Industry Product Innovations
Technological advancements are driving innovation in the Indian hotel industry. Smart room technologies, personalized guest experiences through mobile apps, and AI-powered chatbots are improving guest service and operational efficiency. Hotels are focusing on sustainable practices, such as water conservation and renewable energy sources, to attract environmentally conscious travelers. The adoption of revenue management systems is optimizing pricing strategies and maximizing profitability.
Report Segmentation & Scope
This report segments the Indian hotel industry by type (chain hotels and independent hotels) and by segment (budget and economy hotels, mid and upper mid-scale hotels, luxury hotels, and service apartments). Each segment's growth projections, market size (in M USD), and competitive dynamics are analyzed. For instance, the luxury hotel segment is expected to grow at a CAGR of xx% from 2025 to 2033, driven by increased high-net-worth individuals and luxury tourism. The budget and economy hotel segment will continue to be highly competitive, with significant players like OYO Rooms playing a major role.
Key Drivers of Indian Hotel Industry Growth
The growth of the Indian hotel industry is propelled by several key factors. Economic growth and rising disposable incomes lead to increased travel and tourism. Government initiatives to improve infrastructure and promote tourism further stimulate industry growth. Technological advancements, such as online booking platforms, streamline operations and enhance customer experience. The growth of the MICE (Meetings, Incentives, Conferences, and Exhibitions) sector contributes significantly to hotel occupancy.
Challenges in the Indian Hotel Industry Sector
The Indian hotel industry faces challenges such as fluctuating occupancy rates due to seasonality and economic downturns. Regulatory hurdles and bureaucratic processes can increase operational complexities. The rising costs of labor, land, and utilities impact profitability. Intense competition from both established players and new entrants requires continuous innovation and cost optimization. Supply chain disruptions can affect operations and service quality.
Leading Players in the Indian Hotel Industry Market
- Oberoi Hotels and Resorts
- ITC Hotels
- The Leela Palaces Hotels and Resorts
- Taj Hotels
- Lemon Tree Hotels
- OYO Rooms
- The Park Hotel
- Radisson Hotel Group
- Hyatt Hospitality company
- Marriott International Inc
6-3 Loyalty programs offered by major hotel brands are a significant tool to enhance customer retention and loyalty, driving repeat business.
Key Developments in Indian Hotel Industry Sector
- September 2023: Parkside Hotels & Resorts plans to add at least 20 hotels in India by the end of 2024.
- February 2024: Radisson Hotel Group opened its first internationally branded hotel in Ayodhya.
- March 2024: Suba Group of Hotels launched Click Hotel in Pithampur, Madhya Pradesh, targeting business travelers.
Strategic Indian Hotel Industry Market Outlook
The Indian hotel industry is poised for continued growth, driven by a positive economic outlook and rising tourist arrivals. Strategic opportunities exist in expanding into underserved markets, investing in technology to enhance customer experience, and focusing on sustainable practices to attract environmentally conscious travelers. The industry will likely witness increased consolidation through M&A activity, as larger players seek to expand their market share. The focus on customized experiences and personalized services will continue to drive market growth.
Indian Hotel Industry Segmentation
-
1. Type
- 1.1. Chain Hotels
- 1.2. Independent Hotels
-
2. Segment
- 2.1. Service Apartments
- 2.2. Budget and Economy Hotels
- 2.3. Mid and Upper Mid-Scale Hotels
- 2.4. Luxury Hotels
Indian Hotel Industry Segmentation By Geography
- 1. India
Indian Hotel Industry Regional Market Share
Geographic Coverage of Indian Hotel Industry
Indian Hotel Industry REPORT HIGHLIGHTS
| Aspects | Details |
|---|---|
| Study Period | 2020-2034 |
| Base Year | 2025 |
| Estimated Year | 2026 |
| Forecast Period | 2026-2034 |
| Historical Period | 2020-2025 |
| Growth Rate | CAGR of 13.96% from 2020-2034 |
| Segmentation |
|
Table of Contents
- 1. Introduction
- 1.1. Research Scope
- 1.2. Market Segmentation
- 1.3. Research Methodology
- 1.4. Definitions and Assumptions
- 2. Executive Summary
- 2.1. Introduction
- 3. Market Dynamics
- 3.1. Introduction
- 3.2. Market Drivers
- 3.2.1. Growth in Travel and Tourism in India; Increase in the Number of Hotel Projects
- 3.3. Market Restrains
- 3.3.1. Lack of Skilled Labor is a Challenge for the Market; Sustainability and Competition Threaten Industry Success
- 3.4. Market Trends
- 3.4.1. Increase in the Number of Hotel Projects is Driving the Market
- 4. Market Factor Analysis
- 4.1. Porters Five Forces
- 4.2. Supply/Value Chain
- 4.3. PESTEL analysis
- 4.4. Market Entropy
- 4.5. Patent/Trademark Analysis
- 5. Indian Hotel Industry Analysis, Insights and Forecast, 2020-2032
- 5.1. Market Analysis, Insights and Forecast - by Type
- 5.1.1. Chain Hotels
- 5.1.2. Independent Hotels
- 5.2. Market Analysis, Insights and Forecast - by Segment
- 5.2.1. Service Apartments
- 5.2.2. Budget and Economy Hotels
- 5.2.3. Mid and Upper Mid-Scale Hotels
- 5.2.4. Luxury Hotels
- 5.3. Market Analysis, Insights and Forecast - by Region
- 5.3.1. India
- 5.1. Market Analysis, Insights and Forecast - by Type
- 6. Competitive Analysis
- 6.1. Market Share Analysis 2025
- 6.2. Company Profiles
- 6.2.1 Oberoi Hotels and Resorts
- 6.2.1.1. Overview
- 6.2.1.2. Products
- 6.2.1.3. SWOT Analysis
- 6.2.1.4. Recent Developments
- 6.2.1.5. Financials (Based on Availability)
- 6.2.2 ITC Hotels
- 6.2.2.1. Overview
- 6.2.2.2. Products
- 6.2.2.3. SWOT Analysis
- 6.2.2.4. Recent Developments
- 6.2.2.5. Financials (Based on Availability)
- 6.2.3 Lemon Tree Hotels
- 6.2.3.1. Overview
- 6.2.3.2. Products
- 6.2.3.3. SWOT Analysis
- 6.2.3.4. Recent Developments
- 6.2.3.5. Financials (Based on Availability)
- 6.2.4 Taj Hotels
- 6.2.4.1. Overview
- 6.2.4.2. Products
- 6.2.4.3. SWOT Analysis
- 6.2.4.4. Recent Developments
- 6.2.4.5. Financials (Based on Availability)
- 6.2.5 The Leela Palaces Hotels and Resorts
- 6.2.5.1. Overview
- 6.2.5.2. Products
- 6.2.5.3. SWOT Analysis
- 6.2.5.4. Recent Developments
- 6.2.5.5. Financials (Based on Availability)
- 6.2.6 OYO Rooms*List Not Exhaustive 6 3 Loyalty Programs Offered by Major Hotel Brand
- 6.2.6.1. Overview
- 6.2.6.2. Products
- 6.2.6.3. SWOT Analysis
- 6.2.6.4. Recent Developments
- 6.2.6.5. Financials (Based on Availability)
- 6.2.7 The Park Hotel
- 6.2.7.1. Overview
- 6.2.7.2. Products
- 6.2.7.3. SWOT Analysis
- 6.2.7.4. Recent Developments
- 6.2.7.5. Financials (Based on Availability)
- 6.2.8 Radisson Hotel Group
- 6.2.8.1. Overview
- 6.2.8.2. Products
- 6.2.8.3. SWOT Analysis
- 6.2.8.4. Recent Developments
- 6.2.8.5. Financials (Based on Availability)
- 6.2.9 Hyatt Hospitality company
- 6.2.9.1. Overview
- 6.2.9.2. Products
- 6.2.9.3. SWOT Analysis
- 6.2.9.4. Recent Developments
- 6.2.9.5. Financials (Based on Availability)
- 6.2.10 Marriott International Inc
- 6.2.10.1. Overview
- 6.2.10.2. Products
- 6.2.10.3. SWOT Analysis
- 6.2.10.4. Recent Developments
- 6.2.10.5. Financials (Based on Availability)
- 6.2.1 Oberoi Hotels and Resorts
List of Figures
- Figure 1: Indian Hotel Industry Revenue Breakdown (Million, %) by Product 2025 & 2033
- Figure 2: Indian Hotel Industry Share (%) by Company 2025
List of Tables
- Table 1: Indian Hotel Industry Revenue Million Forecast, by Type 2020 & 2033
- Table 2: Indian Hotel Industry Revenue Million Forecast, by Segment 2020 & 2033
- Table 3: Indian Hotel Industry Revenue Million Forecast, by Region 2020 & 2033
- Table 4: Indian Hotel Industry Revenue Million Forecast, by Type 2020 & 2033
- Table 5: Indian Hotel Industry Revenue Million Forecast, by Segment 2020 & 2033
- Table 6: Indian Hotel Industry Revenue Million Forecast, by Country 2020 & 2033
Frequently Asked Questions
1. What is the projected Compound Annual Growth Rate (CAGR) of the Indian Hotel Industry?
The projected CAGR is approximately 13.96%.
2. Which companies are prominent players in the Indian Hotel Industry?
Key companies in the market include Oberoi Hotels and Resorts, ITC Hotels, Lemon Tree Hotels, Taj Hotels, The Leela Palaces Hotels and Resorts, OYO Rooms*List Not Exhaustive 6 3 Loyalty Programs Offered by Major Hotel Brand, The Park Hotel, Radisson Hotel Group, Hyatt Hospitality company, Marriott International Inc.
3. What are the main segments of the Indian Hotel Industry?
The market segments include Type, Segment.
4. Can you provide details about the market size?
The market size is estimated to be USD 247.31 Million as of 2022.
5. What are some drivers contributing to market growth?
Growth in Travel and Tourism in India; Increase in the Number of Hotel Projects.
6. What are the notable trends driving market growth?
Increase in the Number of Hotel Projects is Driving the Market.
7. Are there any restraints impacting market growth?
Lack of Skilled Labor is a Challenge for the Market; Sustainability and Competition Threaten Industry Success.
8. Can you provide examples of recent developments in the market?
In March 2024, Suba Group of Hotels launched its third hotel i.e., Click Hotel, in Pithampur, Madhya Pradesh, designed to cater to the new age business travelers and features 63 premium contemporary rooms and suites.
9. What pricing options are available for accessing the report?
Pricing options include single-user, multi-user, and enterprise licenses priced at USD 3800, USD 4500, and USD 5800 respectively.
10. Is the market size provided in terms of value or volume?
The market size is provided in terms of value, measured in Million.
11. Are there any specific market keywords associated with the report?
Yes, the market keyword associated with the report is "Indian Hotel Industry," which aids in identifying and referencing the specific market segment covered.
12. How do I determine which pricing option suits my needs best?
The pricing options vary based on user requirements and access needs. Individual users may opt for single-user licenses, while businesses requiring broader access may choose multi-user or enterprise licenses for cost-effective access to the report.
13. Are there any additional resources or data provided in the Indian Hotel Industry report?
While the report offers comprehensive insights, it's advisable to review the specific contents or supplementary materials provided to ascertain if additional resources or data are available.
14. How can I stay updated on further developments or reports in the Indian Hotel Industry?
To stay informed about further developments, trends, and reports in the Indian Hotel Industry, consider subscribing to industry newsletters, following relevant companies and organizations, or regularly checking reputable industry news sources and publications.
Methodology
Step 1 - Identification of Relevant Samples Size from Population Database
Step 2 - Approaches for Defining Global Market Size (Value, Volume* & Price*)
Note*: In applicable scenarios
Step 3 - Data Sources
Primary Research
- Web Analytics
- Survey Reports
- Research Institute
- Latest Research Reports
- Opinion Leaders
Secondary Research
- Annual Reports
- White Paper
- Latest Press Release
- Industry Association
- Paid Database
- Investor Presentations
Step 4 - Data Triangulation
Involves using different sources of information in order to increase the validity of a study
These sources are likely to be stakeholders in a program - participants, other researchers, program staff, other community members, and so on.
Then we put all data in single framework & apply various statistical tools to find out the dynamic on the market.
During the analysis stage, feedback from the stakeholder groups would be compared to determine areas of agreement as well as areas of divergence